Nepal Earns Rs 8.15 Bn from Electricity Exports to India
ECONOMY & POLICY

Nepal Earns Rs 8.15 Bn from Electricity Exports to India

The Nepal Electricity Authority (NEA) has exported electricity worth Rs 8.15 billion during the first five months of the current fiscal year.

According to NEA officials, from mid-July to mid-December 2024, approximately 1.76 billion units of electricity valued at NPR 13.04 billion were exported to India. Nepal has been supplying surplus electricity to India during the monsoon season in recent years, as stated by NEA spokesperson Chandan Ghosh.

The average export rate over the past five months was Rs 4.63 per unit.

The surplus electricity is sold at competitive rates in the day-ahead and real-time markets of the Indian Energy Exchange and to the states of Haryana and Bihar, as per the bilateral medium-term power sales agreement. This has resulted in the NEA earning INR 815 crore by selling electricity during the period, with transactions carried out in Indian currency.

However, as winter has set in, signalling the dry season, Nepal has halted its exports and is now importing electricity from India, Ghosh said. Currently, Nepal imports 300 MW to meet domestic demand, as many of its hydropower plants, which are run-of-river types, face seasonal fluctuations.

Despite plans to increase electricity exports this year, damage to the 456 MW Upper Tamakoshi Hydropower Project due to floods and landslides in September has hindered those efforts, according to NEA officials.

“Electricity exports will resume once river water flow increases. This year, Nepal has also started exporting 40 MW to Bangladesh via India,” Ghosh added.

The NEA has received approval from India to sell 941 MW of electricity from 28 projects in the Indian market under competitive market and medium-term power sales agreements.

The Nepal Electricity Authority (NEA) has exported electricity worth Rs 8.15 billion during the first five months of the current fiscal year. According to NEA officials, from mid-July to mid-December 2024, approximately 1.76 billion units of electricity valued at NPR 13.04 billion were exported to India. Nepal has been supplying surplus electricity to India during the monsoon season in recent years, as stated by NEA spokesperson Chandan Ghosh. The average export rate over the past five months was Rs 4.63 per unit. The surplus electricity is sold at competitive rates in the day-ahead and real-time markets of the Indian Energy Exchange and to the states of Haryana and Bihar, as per the bilateral medium-term power sales agreement. This has resulted in the NEA earning INR 815 crore by selling electricity during the period, with transactions carried out in Indian currency. However, as winter has set in, signalling the dry season, Nepal has halted its exports and is now importing electricity from India, Ghosh said. Currently, Nepal imports 300 MW to meet domestic demand, as many of its hydropower plants, which are run-of-river types, face seasonal fluctuations. Despite plans to increase electricity exports this year, damage to the 456 MW Upper Tamakoshi Hydropower Project due to floods and landslides in September has hindered those efforts, according to NEA officials. “Electricity exports will resume once river water flow increases. This year, Nepal has also started exporting 40 MW to Bangladesh via India,” Ghosh added. The NEA has received approval from India to sell 941 MW of electricity from 28 projects in the Indian market under competitive market and medium-term power sales agreements.

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